Business Wire IndiaFinance Minster Mr. Arun Jaitley has said that the Modi government has clear road map to ensure that poverty eradication is a direct outcome of economic growth. Mr. Jaitley who was delivering his keynote address at The Growth Net, an annual business event outlined the government’s plans to stimulate growth in various sectors of priority such as agriculture, manufacturing, railways, infrastructure and insurance.

The opening plenary session was moderated by Ms. Shereen Bhan, Managing Editor, CNBC-TV18. The other participants in the session included Mr.NK Singh, Chairman, The Growth Net Summit and Senior Member, Bharatiya Janata Party and Mr. Claude Smadja, President of the Smadja and Smadja Strategic Advisory.

Speaking about the land acquisition bill Mr Jaitley said that the current government had increased the number of exempted areas to 18 from the previous 13 exempted areas in the original bill of 2013. He also added that compensation in those 13 areas had been increased. He said that the bill had completely decentralised powers to state governments.

Excerpts from the key note address

“I think the data looks encouraging: broadly inflation is under control, foreign exchange is comfortable, growth rate is reasonable, current account deficit should be less than one in the coming year, so we have a roadmap now that we hope to maintain. There’s no room for complacency though. Agriculture, job creation, infrastructure, manufacturing are areas where we have a lot of distance to cover. I’d be satisfied if manufacturing grows at a higher pace, job creation is faster, agriculture growth takes a leap, and we achieve double digit growth. But I do see an opportunity revisiting us. Things have begun to change.”

“Agriculture and manufacturing are two key areas to power India’s growth. These are areas where sky is the limit for opportunities and reforms. But India can’t grow if half its energy is directed in fighting obstructions.”

"When you’re in governance, there is always a struggle on how much you can deliver. Prime Minister Modi’s government has decided what it wants: over the next ten years we want higher rates of growth, and want to use this for poverty eradication. Both these goals are interconnected.”

“Our mining law has been approved and very soon the sector will be thrown open. It sends a very positive signal on how natural resources are to be allocated. We need to do them in a transparent, allegation-free manner. In the last few months, the genuine federalism of the government has empowered the states. In the Niti Aayog, a lot of schemes have been decentralised and have been invited to make recommendations. But cooperative federalism needs to coexist with competitive federalism.”

"Global investors are looking at us. China is looking for other economies in the region. This is an opportunity that has to be capitalised upon."

“We don’t pressurise the banks to cut rates but we do expect them to act in a prudent manner. We will see more cuts in the future. India needs to lower its interest rates.”

“I intend to step up disinvestment in the coming year. Dying units that are unable to revive cannot be funded by the taxpayer. The list of strategic disinvestments has been drawn up.”

On agriculture: Mr. Jaitley said “Though we have a food surplus, we depend too much on forces of nature. The sector needs more diversification and increase in the extent of expenditure. States like MP, Gujarat agriculture has grown over 8% after the state governments made substantial investments.

On Make in India: Elaborating on the ‘Make in India’ initiative of the government Mr. Jaitley said “this is a sector in which we need to create an engine of growth. We have observed that there is interest to shift manufacturing to India from countries like China where the costs have gone up.” He added that the ‘Make in India’ campaign has and the recent budget proposals have allowed companies and state organizations to initiate. Concluding his remarks with his assessment of the defence sector Mr. Jaitley with increased liquidity getting into the sector, the private sector will be encouraged to enter the sector.

Mr. Claude Smadja, President of the Smadja and Smadja Strategic Advisory who moderated the session said that “If there is a time to be optimistic and hopeful about India, it is now”

Jointly convened by the Ananta Centre and Smadja & Smadja Strategic Advisory, The Growth Net which was launched in 2013 reflects the new realities created by the emergence of a group of new growth countries which are rapidly increasing their business, economic, trade and financial interaction and aspire to have a stronger voice in the global economy. It is a catalyst to develop a fruitful dialogue among business leaders, government officials and the civil society from the countries of the new constellation of growth on how to strengthen economic momentum and generate new sources of growth through the deepening of partnership strategies for rapid sustainable development in Asia, Africa and Latin America.

About Ananta Centre

An independent and not-for-profit organization Ananta Centre is registered under the Indian Trust Act. It focuses on leadership development and encourages frank and open dialogue on the most important issues facing Indian society, to help foster its transformation. The Centre also engages civil society, business, governments and other key stakeholders on issues of importance to India's development, foreign policy, strategic affairs and national security. The Centre serves as a convening body for exchange of ideas, broadening perspectives and enhancing capacity to create sustainable solutions on a wide variety of issues.

About Smadja & Smadja Strategic Advisory

Smadja & Smadja was established in 2001 in Switzerland and in the US. The firm works with global corporations and government entities on global trends and strategic issues. Our mission is to help our clients navigate and leverage globalization, providing them with “actionable” insights and a “world view” to help them manage the increasing volatility and complexity of a globalized world. The firm creates platforms of contents – from strategic, behind closed doors, seminars to high profile international conferences – that are knowledge and networking intensive, with significant take home value for the participants. Smadja & Smadja has activities, clients and partners in Asia, North America, Europe, Latin America and the Middle East.